TMI BlogContractual Compliance and GST Reimbursement: Unpacking a Landmark Judgment"X X X X Extracts X X X X X X X X Extracts X X X X ..... d Services Tax (GST) implications on contractual obligations. The core issue revolved around the withholding of the GST amount by the respondent and the corresponding entitlement of the petitioner to the reimbursement of the GST amount, along with statutory interest, as per the contract terms and GST Act, 2017 . Factual Background The petitioner, a contractor engaged in a rural electrificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction of GST. Applicability of GST on Transactions : The key legal question was whether the GST impact applied to both direct and indirect transactions under the contract. Doctrine of Promissory Estoppel and Constitutional Principles : The petitioner alleged that the respondent's actions violated the doctrine of promissory estoppel and were contrary to Article 14 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unding facts and circumstances. It was established that the contractual terms were clear and unambiguous, indicating that the GST impact applied to both direct and indirect transactions. Doctrine of Promissory Estoppel : The court found the respondent's actions to be contrary to the agreed contractual terms and in violation of the doctrine of promissory estoppel and Article 14 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss in contractual dealings, especially when a public authority is involved, and reinforces the principles of promissory estoppel and constitutional guarantees of fairness and non-arbitrariness in state actions. Full Text : 2023 (7) TMI 1292 - JHARKHAND HIGH COURT - FAQ - Frequently Asked Questions, TMI Short Notes , Experts comment, opinion Tax Management India - taxmanagementi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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